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Industrialists differ on RMG export growth data released by Centre


Date: 18-04-2019
Subject: Industrialists differ on RMG export growth data released by Centre
Tirupur: While the Union commerce ministry has released data on readymade garment exports (RMG), industrialists in the Tirupur knitwear industry have a different take.

The Tirupur Exporters’ Association (TEA) said that if the value is calculated in Indian rupees, RMG exports has gone up by 8.3% in 2018-19 compared to the last fiscal year. But the Tirupur Exporters and Manufacturers Association (Teama) said the export value should be presented in US dollars, so that real figure could be found.

As per the Union commerce ministry, RMG exports in the country accounted for $16.137 billion in 2018-19, which was 3.4% less than the export value last year, which stood at $16.714 billion. With an export value of $17.361 billion, 2016-17 was the recent fiscal which recorded a positive growth - of 3.1% higher than the previous year.

Tirupur accounts for about 55% of the knitwear exports in the country. Industry experts say the Tirupur industry has recorded an RMG export value of $3.72 billion in 2018-19; in the two previous fiscal years, it recorded $3.85 billion and $4 billion.

TEA president Raja M Shanmugham said, “Knitwear exports from Tirupur is estimated to be Rs 26,000 crore in 2018-19 against Rs 24,000 crore in 2017-18, with a growth rate of 8.3%.”

He said that after two years of struggle, exports have resumed the growth trajectory. While appreciating Tirupur exporters’ usual perseverance against all odds, he is confident that with the continuance of a positive growth trend coupled with the recent increase in RoSCTL (Rebate of State and Central Taxes and Levies on Export of Garments and Made-ups) rate, and formation of a stable government, exports are poised to surpass Rs 30,000 crore in the financial year 2019-20.

CPM Tirupur district secretary S Muthukannan said, “It is important that the export value should be projected in US dollars, so that real growth can be ascertained. If the value is calculated in rupees, it would indicate that the industry has attained growth. But in reality, the value was high due to continuous depreciation of the rupee against the dollar. If so, how it can be ascertained as real growth?”

“The industry is yet to recover from the double blow of demonetisation and GST, and we witnessed many units being closed down in the past two years. With a highly competitive international market, the units here would have to manage with lower margins. Reduction of duty drawback and delay in GST returns and other subsidies would have a detrimental effect on the industry,” said Tirupur exporters and manufacturers association president S P Muthurathinam.

“In a press release, TEA said that stated that if stable government is formed, Rs 30,000 crore target of export value can be achieved in this fiscal year,” Muthukannan said.

Source: timesofindia.indiatimes.com